Zhejiang Zhaolong Interconnect Technology Co. Limited

In early trading on September 9, all three major A-share indices rose, and the communications equipment sector became active again. CPO concept stocks rallied at the open, with Zhaolong Interconnect surging by the 20 percent daily limit, Yangtze Optical Fibre and Huagong Tech also hitting their daily limits, and Zecheng Electronics rising more than 12 percent. On the news front, the 2026 China International Optoelectronic Expo is being held in Shenzhen from September 9 to 11. Meanwhile, Goldman Sachs raised its forecast for the global optical module market, expecting it to reach about 67.7 billion US dollars, 131.4 billion US dollars and 148.5 billion US dollars in 2026, 2027 and 2028 respectively, up 33 percent, 81 percent and 115 percent from its previous estimates.

Zhaolong Interconnect released its 2026 interim report, showing first-half net profit attributable to the parent of 106 million yuan, up 18.1% year-on-year, and operating revenue of 1.22 billion yuan, up 25.6% year-on-year. Second-quarter operating revenue was 712 million yuan, up 36.0% year-on-year, while net profit attributable to the parent was 57.31 million yuan, up 0.5% year-on-year. The company said that as artificial intelligence and industrial digital transformation accelerate, demand for data center, industrial communications, and integrated cabling products has increased significantly, and orders for high-speed cables and connectivity products have grown rapidly. In terms of product mix optimization, sales revenue from Category 6A and above data cables rose 39.51% year-on-year, and sales revenue from specialty cables rose 67.98% year-on-year.